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Occidental Petroleum’s 2Q16 Production from Ongoing Operations

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Aug. 9 2016, Updated 8:09 a.m. ET

Occidental Petroleum’s 2Q16 production from ongoing operations

For 2Q16, Occidental Petroleum (OXY) reported production from ongoing (or core) operations of 609 Mboe (thousand barrels of oil equivalent) per day. That’s within its 2Q16 production guidance of 600–610 Mboe per day.

The company’s 2Q16 production from ongoing (or core) operations is higher by ~10% when compared with 2Q15 production of 552 Mboe per day. It’s also higher sequentially by ~8% when compared with 1Q16. This can be attributed to record production in Abu Dhabi and Oman.

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Occidental Petroleum’s ongoing (or core) assets exclude assets that it either divested, exited, or is in the process of exiting. These assets include Williston (sold in 4Q15) and Piceance (sold in 1Q16) in the United States, Iraq, Yemen, Bahrain, and Libya in the Middle East–North Africa. This leaves Abu Dhabi, Oman, and Qatar in the Middle East, Colombia in South America, and the Permian basin in the United States as OXY’s core assets.

Occidental Petroleum’s 2Q16 production from all operations

For 2Q16, Occidental Petroleum reported production from all operations of 653 Mboe per day. Its 2Q16 production from all operations is lower by ~1% when compared with 2Q15 production of 558 Mboe per day. Its 2Q16 production from all operations is also lower sequentially by ~1% when compared with 1Q16.

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Occidental Petroleum’s updated production guidance

Occidental Petroleum had a strong start in the first half of 2016 with increases in production from Al Hosn and Block 62, along with strong YoY (year-over-year) production growth from Permian Resources. Because of this, the company now expects 2016 production from its ongoing (or core) operations of 590–600 Mboe per day. This new 2016 production guidance is at the higher end of its previous full-year 2016 production growth guidance of 4%–6%.

For 3Q16, Occidental Petroleum expects production from its ongoing (or core) operations of 600–605 Mboe per day. That’s a midpoint increase of ~4% when compared with 3Q15 production.

Other upstream players

Recently, many S&P 500 (SPY) upstream companies such as ConocoPhillips (COP), Southwestern Energy (SWN), and Pioneer Natural Resources (PXD) have also increased their 2016 production guidance.

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